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Figtree Holdings, a Singapore-based property investment firm, believes that companies from the city-state have a good chance of becoming successful in China’s industrial real estate market, reported the Straits Times.
The outlook on Chinese industrial facilities is promising, as there are fewer industrial developers in the country versus those that specialise in building homes, said Figtree Holdings managing director Danny Siaw.
Another advantage is that Figtree’s facilities are of better quality as they follow European building standards. These premises also take into account the needs of the end-users.
“The locals are usually more driven by how much space they can build. They will maximise their space, but they won’t think of what the manufacturers require… That sets us apart.”
Moreover, Siaw likes the Chinese market as there is plenty of space for other Singapore industrial developers to thrive. “China is a big place, so it can accommodate. The cake is big, so we can share.”
In particular, he is bullish on the industrial property sectors of Xi’an, Chengdu and Chongqing, which are expected to benefit from the Chongqing Connectivity Initiative launched in 2015.
“There are three cities that are large enough to take on this kind of initiative,” he explained.
The initiative, which is jointly being implemented by Singapore and China, aims to establish a trade route from Chongqing that connects with Southeast Asia, with a focus on logistics.
Meanwhile, Siaw noted that to successfully do business in China, it requires a local partner familiar with the market conditions. “But the important thing is, we must be controlling the company.”
Earlier this year, Figtree teamed up with Singapore-listed Vibrant Group to acquire a 51 percent stake in Yufu Industrial Park, which consists of retail spaces, seven blocks of warehouses and F&B outlets.
Construction of the development is targeted to commence in Q1 2018, with completion by 2021.
Furthermore, Siaw revealed that they have prior experience in China. Last December, it completed a 928-unit residential development in Jiangsu province, where it’s currently building an industrial park and a mixed-use project.
This article was edited by Keshia Faculin.
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